Australia’s QIC Makes History With Shopping Mall Sale

Queensland Investment Corp. sold Sydney-based Westpoint Shopping Centre in the largest single transaction of an Australian retail center. QIC sold Westpoint to Australian asset manager Haben and U.S. investment manager Hines, each of which will take a half stake.

Financial Standard, which, like CIO, is owned by ISS STOXX, reported the final sale price as A$900 million ($605 million), surpassing the 2017 sale of Indooroopilly Shopping Centre for A$800 million.

Michael Fattouh, QIC’s town center fund manager, said the deal reflects positive performance driven by 34 years of active management.

“As one of the first QIC Real Estate assets, jointly owned by the QIC Property Fund and QIC Town Centre Fund, it has been a rewarding journey transforming Westpoint into the retail and lifestyle heart of Blacktown [in Western Sydney],” Fattouh said. “We are immensely proud of Westpoint’s evolution, and it is only fitting that its sale is the retail deal of the year. This sale, while still subject to FIRB approval, further showcases QIC’s ability to not only drive performance through active management, but to also deliver successful transactions on behalf of investors when the time is right.”

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The QIC, with roughly $67.25 billion in assets under management, is an investment company founded and owned by Queensland, Australia, to manage the long-term investment needs of the state government.

Ben Finger, managing director and co-founder of Haben, said the shopping center was a significant asset offering core retail and mixed-use zoning in one of Sydney’s fastest-growing areas.

“This acquisition presents a strategic opportunity to partner with Hines on their first Australian retail acquisition, establishing one of the largest retail partnerships in Australia,” Finger said. “Haben are pleased to take over the management and have a strong belief in the resilience and potential of the Australian retail market. We greatly look forward to continuing to grow Westpoint Shopping Centre alongside its expanding demographic.”

This article first appeared in our sister publication, Financial Standard, which, like CIO, is owned by ISS STOXX.

Tags: Ben Finger, commercial real estate, Michael Fattouh, Queensland Investment Corp., shopping centers

DUMAC [Duke University Management Co.] Inc., which manages the endowment of Duke University, achieved an 8.0% return in fiscal 2024, which ended June 30. Assets of the fund’s long-term pool grew slightly to $11.9 billion from $11.6 billion at the end of the 2023 fiscal year.

“The mission of Duke University’s endowment is to support the people, programs and activities of the university in perpetuity,” stated the university’s report. “Over the years, growth of the endowment through investment return and charitable giving has enabled the university to provide scholarships and fellowships to students, build faculty excellence, launch new programs and research efforts, and support a wide range of important needs.”

Neal Triplett is the president and CIO of DUMAC.

DUMAC does not release a breakdown of its asset allocation, but, in a report, stated that the fund has a long-term target allocation of 56% to equities (comprised of both listed stocks and private equity), 16% to sources of independent return, 9% to commodities and 7% each to high-yield credit, real estate and investment-grade fixed income.

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Approximately 23% of the endowment supports financial aid, and another 21% supports faculty positions and professorships. Approximately 31% of the endowment is designated for unrestricted support of the university, 15% is restricted, and 10% is designated for instruction and research.

The endowment seeks to achieve an annualized real rate of return of at least 5%, according to the university report. This return would allow the endowment to fund university spending and allow for the growth of the fund’s assets after inflation.

The fund had negative returns in each of the last two fiscal years: negative 1.0% in 2023 and negative 1.5% in 2022. Its last positive return, in fiscal 2021, saw the fund achieve a 55.9% return. The endowment has returned an annualized 8.6% over the past 10 years.

Assets of the endowment peaked after the significant fiscal 2021 gain, at $12.7 billion, and have more than doubled since fiscal 2010, when they stood at $4.8 billion.

Updated with correct returns